How The Diamond Market Is Controlled
How The Diamond Market Is Controlled
Beyond magnificence and splendor, the world of diamonds evolves on stirred grounds. When the stake is so important, interests collide. Below are some interesting off-stage events in the diamond industry and innovations in technology.Derek Parsons, the president of the Diamond Bourse of the Southeast United States has filed a lawsuit against De Beers, on the Cost of the Organization's disregard of American competition law. Their Supplier of Choice policy puts the American dealers at a disadvantage. The suit was not launched on behalf of the Miami bourse but on behalf of diamond dealers in the usa, condemning the criteria on which De Beers makes the sales - they would sell only to their sightholders, discouraging the non-sightholders and keeping prices artificially high at a non-competitive level. Diamond mining expandsDiamond rising prices have stimulated the exploration and mining in more countries such as Canada, Russia, Angola, India, Brazil. Nevertheless, about 40% of diamonds still come from Botswana and South Africa. clearance diamond stud earrings on the rough diamond market was declared to have decreased from 70% to approximately 50 percent. wholesale diamond necklace and Brazil are prospected by geologists also due to the simple fact that they are known to have been a diamond source in the last year.The largest diamond reserve of Africa lives in extreme povertyEven though the fourth largest producer in the world by value and the holder of the largest diamond reserves in Africa. People' s main way of subsistence is agriculture.The diamond sector has been severely affected by the long war and by gem smuggling. Yet it reflects a very important potential driver of economic improvement. Since 2002, once the conflict between the government and the UNITA rebel movement ended, developing the sector has become a national priority and the government has already made changes to the diamond sector regulations. Serious redevelopment and investment is needed in this field. At present, artisanal mining operates in Angola and it brings very little economic benefit to local communities.Increasing conflict in Russia between diamond cutters and minersThe Russian company Alrosa is the largest diamond miner in the world outside De Beers. Diamond cutters accuse Alrosa of favoring exports and providing larger stones for the foreign market and offering only small-sized diamonds to the internal market. On the other hand, Alrosa says that cutters cannot be permitted to choose the assortment of size they want. The result is that Russian cutters are buying million dollars in rough stones from South Africa each month. Russian manufacturers had a production of $1.1 billion in 2003, and Alrosa is estimated to produce around $2 billion worth rough diamonds this year. Find-diamonds computer software Partition Enterprises has been working together with the De Beers company and the University of Queensland to develop a program that calibrates the density separator x-ray sorting machines more accurately, thus maximize the diamond yield. Partition will showcase their products at the Electra Mining 2004 Exhibition in Johannesburg.De Beers sightholdersSightholder firms have to satisfy various criteria including a high level of expertise in valuing rough diamonds, high experience in cutting and polishing. De Beers has 125 sightholders to whom they assure a monthly direct supply of rough diamonds and from whom they collect around $ 600 million. The privilege of being a sightholder company is carefully preserved, as being a sightholder means being,,on the cards", otherwise the supply of diamonds may become dangerously scarce for that company. That's why the offered diamonds will be eventually purchased irrespective of their quality - the pack diamonds can be argued on but they are quite rarely rejected, as the sightholder cannot afford to lose its status and break the relationship with De Beers Diamond Trading Company, relation that is essential for business.Back in Japan, the only company appointed as sightholder is Tasaki.Innovative complementary grading toolA new attribute will probably be added in grading reports: the light performance. Even though the idea of measuring the light performance of diamonds has been introduced six years ago, this standard of diamond evaluation was never introduced into the grading reports of diamond grading laboratories. GemEx Systems, Inc. of Wisconsin and EGL USA of New York will provide a combined diamond grading report to diamond customers - besides the certification of the 4Cs, its light performance will be quantified. The particular section in the report will include the results of diamond analysis under six different lighting angles.The GemEx Light Performance Report makes the difference between diamonds with similar 4C characteristics that can differ in brilliance, sparkle and fire. The research is the effect of a patented spectrophotometer technology based on the computerized BrillianceScope that measures diamonds' brilliance, fire and sparkle, providing a potent tool for the cutting, sales, buying and marketing of fine diamonds.